New Jersey Clears Docket: Dismisses 80,000+ cases

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GUEST TONIGHT: KENNETH HANKS, ESQ. TITLE EXPERT

One might ask why a lender would delay the prosecution of their claim. The answer is that they wouldn’t delay if they thought they had a solid claim. I know. I have represented banks on loans, foreclosures, associations in foreclosures etc. And I have proposed that if the Courts were to order the alleged ‘holders” to show the actual money trail so we would all know what transactions actually took place, their dockets would be clear, because most of the transactions described on assignments and indorsements never took place.

We have seen cases dating back to the 1990’s that have not been prosecuted and judges in all states are dismissing for failure to prosecute, which in turn brings up the statute of limitations, which I warn you is applied very differently from state to state. But in many cases they cannot refile because the statute of limitations has run and they are out of luck. So why would a bank (who is representing to the court that it the loser in a transaction with the borrower ) allow so many cases to be dismissed? Is there reason for this madness?

I believe there is. But the reason probably varies from case to case. Suffice it to say that we will see what plays out in New Jersey. My guess is that many of the documents used by foreclosers represent transactions that were fictitious or duplications of other transactions and now they are picking which story to go with in court but he courts are getting annoyed with the actual complexity of what seems to be a “simple” claim. The borrower didn’t pay, isn’t that enough? Actually no.

The essential problem that is now bubbling to the surface after years of suppression is this: the lender is receiving payments based upon a different deal and computation than the deal and computation the borrower is required to pay. The lender’s right to repayment comes from the bond indenture on the mortgage bond issued by a REMIC trust that never had any money, assets, income or expenses.

That indenture doesn’t say the investor will be paid according to the homeowner notes on loans originated or acquired by the trust or with the money from the trust beneficiaries. It provides for a specific yield of interest and principal regardless of what the notes say and even regardless (many times) of whether the borrower pays or not. Those terms are different than the terms signed by the homeowner. And the note and mortgage, were mostly executed in favor of parties who did not make any loan, never received the delivery of the note and never had any interest in the transaction. So what good are assignments from parties with zero ownership interest to convey?

We have reached a turning point where courts and others are saying to the banks, “if your claims are real, why didn’t you prosecute them for years?”

http://www.wnyc.org/story/new-jersey-breaks-foreclosure-logjam-yields-flood-dismissals/

42 Responses

  1. @ Poppy:

    Re: Judge bidding in foreclosure auctions. That’s why he got that job!

    Even though it won’t make a dent in anything if you disclosed that it’s better to lay it out than keep it to yourself. at least it might make others who experienced his corruption to speak out also.
    But: reality is they’r all in it!

  2. Folks:
    Just as Mrs. Kay Griggs, the wife of a murderer U.S. Marine colonel stated in her testimony linked here last year the legal system here is totally corrupt, and run by corruption of courts by military JAGs.

    Here is a wonderful 1935 proof by the U.S. Supreme Decision:

    294 U.S. 103 (55 S.Ct. 340, 79 L.Ed. 791)

    MOONEY v. HOLOHAN, Warden of San Quentin Penitentiary.

    “The [Supreme] court, adopting the opinion of the court below, concluded that the judgment could not be set aside because it was predicated upon perjured testimony or because material evidence was concealed or suppressed, that the fraud in such a case was not such fraud as was ‘extrinsic to the record,’ and that it was only in cases of extrinsic fraud that the relief sought could be had.”

  3. Oh and the LLC, LLP, Corporations, PLLC, Holdings, SEC Trusts, etc…many names. Been through thousands of them in states like, AZ, NV, CA, TX….cross reference names, dates, owners, affiliates….with help from a couple other pack-rats and the information is out there….some are careful, some are not. They are by all accounts arrogant and unafraid. That is curious…it has occurred to me, this is very big and many of them are protected, by whom? IMHO the larger players, the government officials. The scale of this could not happen without power players. That’s my answer

  4. I’d like to tell-all, but frankly, I could put myself in danger. Suffices to say, at least with a couple of things I mention, extensive contacts…cross-referencing names, companies, etc…lots of digging. Some of them are not that careful. And in the state I am in, a careful eye, asking around, knowing some of the right people, put you in a place…honestly, in some cases they are not that discreet, especially the lawyers.

    I mention this, because it is important. It is not always necessary to look very far, to figure out why you are not gaining traction. IMHO these things should be reported, so “maybe” others with better access can seek the truth. There are many taking liberties with our property….best answer I can give

  5. @ Poppy ,,

    I agree with your evaluation ,,, however in FL and I suspect many other states the judges and lawyers all have their names redacted from any recorded document ,, you can’t search on them by normal means … they use this psuedo immunity to get away with all sorts of brazen thefts … running toll booths and red light cameras with impunity (name blocked when running the license plates) is a common example..

    They are no doubt hiding the purchases behind LLC’s and corp structures ,,, How are you finding your info?

  6. I hope many of you know why I am mentioning this behavior. The lawyers on here ( a couple of them), would like us to believe all we need to do is hire an attorney, get a modification, spends tens-of-thousands of dollars and we will live happily ever after, NOT.

    The end game behavior does matter, you bet! When this finally unravels and it will, the lawyers are in for a big shock. Criminals are still held accountable…and how can you ignore the paperwork being submitted, these guys act like it doesn’t matter.

    I beg to differ!

  7. We have the same thing here in my area. Judges and attys stealing the houses and throwing the homeowners to the curb.

  8. I have 100% on one judge who is bidding at auction on houses he is foreclosing on, excuse the language here; but WTF

    A reorganization attorney, buying homes from Recon Trust, have the documents too…

    Then an attorney who is moving the DOT into his own company, with Ocwen in play….is the legal representative for the servicer Ocwen supposedly and going from one court to the other after removing a case to Federal Court to try and foreclose…all sanctioning behavior and possible disbarment. I have this on paper….laying low with it, for the moment!

    Most folks have no idea, how deep and disgusting this goes!

  9. you have to know that the judges relatives dont like or respect them when thre judges are such liars and thiefs.

  10. what did Alice Schlesinger spend her money on for her illegal ruling against the Constiiution in favor of a title company

  11. Poppy
    not only the background check we should focus in on how much each
    judge spends for their clothing, whether they wear cheap or expensive clothing, and where are they getting the money I remember David B Saxe a new youk appellate judge bought a second small apartment in NYC he called maid quarters at a time when the judges were complaining of no money., anyone have info on how he ruled then..

  12. NG – the failure to prosecute could be for many reasons, including the ones we suspect. But watch out for the potentially favorable effect of an involuntary dismissal for the banksters.

  13. This does not apply to MA Housing Court Judges! We are the victims of an illegal foreclosure on a home that was paid off and the bank submitted an INVALID CREDIT BID. All of this without our knowledge because MGL ch 244 sec 14 was ignored. The corrupt Judge will be exposed and removed from the bench if its the last thing I do. We paid $35,000 in legal fees and had an attorney that I had to tell him what to do. The Judge made an illegal and unethical Judgment and we later found out that his wife was an attorney and the head of the legal department for the #1 big bank accused of illegal foreclosures. Can you say “CONFLICT OF INTEREST”?

  14. Poppy that is a great idea. We should all start investing in background checks…

  15. It is my belief that if a background check was done on some of these lawyers and judges you would find “curious” property ownership, distant-removed bank accounts and lifestyles beyond their means. They are not that bright.

    and I think anything and everything is fair game…they are “fixing” the game on us, why not do it to them?

  16. Judges like Schlesinger that refuse to obey the Constitution should be held for treason, they are doing everything they can to destroy our Country. How can we get more judges like Arthur Schack?

    New Yorkers sure told them what they thought of them when they the judges wanted to stay in office for more years.

    It is obivious these judges don’t have the brain capacity to save our country.

  17. Again I askl how many judges like Schlesinger stole homes and apartmentns and perpetrated title fraud so they could get in on the profits of Fidelity title and other corrupt title companies?

  18. No you did not, ian…and these are the “relevant” questions any HONEST judge should be asking. Otherwise, this a criminal act when you present “unverified” “undocumented” claims before the court, IMHO.

    No ambiguity! I have personally never had a great deal of faith in the justice system…herein we have lawlessness and I personally care less what some of the “supposed” lawyers here say. What is their agenda, trying to move us off the criminal behavior presented as “actual, truthful evidence” of anything…this precedes all of the other notions of a trust, tranches, real REMICS, etc…and these lawyers playing middleman to modify…hogwash all of it! The only people gaining in that are the lawyers and the counterfeiters, with an instant replay of a paid off note, presenting it as due in full with fees and arrears…I know what I possess and even though much of it are fabrications and outright lies, you can trace the “creeps” and their attempt to cheat, lie and defraud.

    Otherwise, why would they wait years, use 3rd, 4th, 5th, 6th, parties who are so far removed? And every state I have checked the notary rules and applications where they state: a full last name on your application is the proper, legal endorsement of your verification of legal documents, not scribbles, chicken scratch.

  19. Poppy- as you said, the note “evidences the debt”. The only questions are: what debt? Owed to whom? Collateralized by what? Who holds the collateral? Does the collateral secure any other debt(s)? To whom are the other debts owed? Why? Has anyone collected in whole or in part any of the debt through third-party payments? Are these or any payments memorialized anywhere? Check ASLA.
    Did I miss any?

  20. Thanks, I have…many here and in other places still are not believers. This changes the game significantly. In North Carolina, it is clearly stated that “ALL” assignments must be presented…really? I have been in court and the judge completely disregards his “own” laws! Then says: if you don’t like my ruling “appeal it”…why should I or any of us have to bear the burden of expense to appeal a blatant breach of the law?

    BTW: the statements; every single one of them is a different amount, with absolutely no break down of fees, charges or even the “alleged” original amount due. In NC we have a set 15% lawyers fee or $6,000.00, whichever is LESS. That is just the tip of the iceberg…

  21. Poppy, please read the Fair Debt Collections Practices Act on Wikipedia. It gives all the wonderful ways they break the law on debt collection. They are all debt collectors in the mortgage servicing world, and they break the law multiple times a day.

  22. Poppy, that is a problem.

    The Estate is …

    1. Surety
    2. Warrantor
    3. Debtor
    4. Creditor
    5. All of the Above

  23. Just a small comment: it really boggles my mind that the “note” is evidence of the debt and the courts are allowing hearsay evidence to replace actual evidence acquired through lawful means. What is it these people do not get?

    All of these definitions are defined. Clearly, the courts/judges need a remedial class in hearsay…and the UCC doesn’t apply to the contractual language or admission of these documents, not in the immediate. If we were in a criminal trial, which IMHO we are, in most cases-last time I checked counterfeiting is a crime, you cannot just show a document and say, well I’m a lawyer and I say so…hogwash all of it! Much of the time the lawyers have bought the “distressed” debt, which either been satisfied, reduced to rubble and the players are trying to get paid multiple times for the same debt! Good Gawd…this is so criminal…if there is such a thing, beyond criminal!

  24. Good Morning Sunshine,

    I suspect most of these families don’t have a clue that these cases remained open, some for many years.

  25. This is interesting. The h.o.’s attorney sent the lender a notice of rescission letter within 3 years of the loan closing. HSBC apparently refused to recognize the rescission. The homeowner, outside the three years from the loan’s inception, filed suit against HSBC. The lower court ruled for HSBC, but the appeal court reversed, stating that the notice within the 3 years was all that was necessary under TILA, that the Act didn’t require court action within the three years (which was HSBC’s argument).

    http://www.morelaw.com/verdicts/case.asp?n=11-4254&s=PA&d=59172

    02-06-2013 – 3rd C from ED PA
    Daniel R. Sherzer v. Homestart Mortgage Services
    Case Number: 11-4254

  26. equal dignities rule II:

    “A rule of agency law that stipulates that when a contract is required by law to be in writing (like a dot, I’d say), the authority of an agent to enter into such a contract on behalf of his or her principal must also be in writing. For example, a power of attorney for real estate contracts must be in writing because state statutes of fraud generally require that all real estate contracts be in writing and that the agent’s authority likewise be in writing. Usually the poa agreement must also be recorded if the real estate contract (such as a land contract for deed) is expected to be recorded.”

  27. “Equal-dignities rule refers to a legal doctrine requiring an agent to perform all acts authorized by a principal. An agent can perform those acts only if the agent’s authority is set forth in writing. Equal-dignities rule is essentially a corollary to the statute of frauds. Under this rule, a contract would be void unless reduced to writing.* For example, those contracts subject to the statute of fraud, authority to enter into such a contract must also be in writing.”

    *The writing is required to be signed by the principal. Any agency for an act which itself requires a writing (like an assgt of a dot) must be evidenced by a writing signed by the “party to be charged”, the principal.

  28. iwantmynpv – you’re so right. Most of those people are probably just scared to death and are glad to see it go away…for the moment. Pretty soon we’ll be making more headway with our own mtns to dismiss – with prejudice – and for sj. Just a reminder fwiw – it’s my understanding a mtn for sj precludes at least a voluntary dismissal.

  29. E. Tolle I am with you preach brother! neidermeyer I am waiting for the we should lay down a quit crowd to show up and give us no advice to win cases.

    I read today how these HAMP modifications were going to start increasing at the 5yr mark, as the rate increase because they thought after 5yrs the economy would be better as something like 40% have already defaulted already. I don’t think they ever gave people the right rate on some of these mod anyway to set them up for failure, but as most these thing fail by the time Obama out of office these folks in the end are screwed. What about them modifications now Gene?

  30. The Defendant’s in Jersey were better off fighting the dismissal, and being compensated for the frivolous filing. Now, the servicer simply refiles and the clean up the shit that did not float on the first run.

    Sad, Sad Sad…

  31. “….what’s the story?”

    The story is that the tale your cohorts have been telling for years now, convincing judges from coast to coast that you’re all totally above board and really decent people simply attempting to collect on a legitimate debt, is unraveling as fast as the cheap suits you’re all wearing.

    The days are numbered, time’s almost up, and that eerie sound’s the not-too-distant swoosh of the grim reaper swinging his scythe…. looking for low-life lawyers (redundant) who’ve been casting good folks to the curb for fun and profit. And it ain’t going to be pretty. Pity all of you. And you thought you’d have the last laugh.

  32. the dismissals were without prejudice. what’s the story?

  33. @ Charles Reed ,

    *******************
    This is no different than a murder going from state to state murdering people and his record follows him. There no doubt as with the NY Post story that these clown have come up with strategy to get around blank endorsed Notes and it not legal what they are doing!
    *******************

    I can’t wait to see what EEYORES and Gene’s response to this is…

  34. Now all that’s left is … Going to court to get what you didn’t get from the Get Go ….. NOW IS A GOOD TIME TO DO IT!

  35. Don’t forget Security First & One Action Rule …..

    State by State …. of course.

  36. The bank whose corrupt debt attorneys MJRF that auctioned off my two properties even though they never owned my two properties
    are long gone but there is no statute of limitations on a void ab initiio
    judgment since it is a nullity .Astoria Federal new attorneys recognized any judgment signed in a state court while the case is under federal juridiction is invalid, a nullity and time can never make a
    void initio judgment valid

    How many judges like Schlesinger stole homes and perpertrated title fraud so they could get in on the profits of Fidelity title and other corrupt title companie?

  37. Many courts should have been vigilant about these cases and documents but were not. My recent experience trying to obtain a title search wherein I was told that they would not do a title search nor an opinion on title because (you will love this) it might mess up somebody’s E&O insurance.

  38. Simplicity!

    I LIKE IT!

  39. Good Morning Sunshine …..

    You don’t say ..

    ** judges in all states are dismissing for failure to prosecute, which in turn brings up the statute of limitations, which I warn you is applied very differently from state to state. But in many cases they cannot refile because the statute of limitations has run and they are out of luck**

    Oh Wait … Yes You Did!

    Don’t wait for the Bad Boys to come for you!

    ~Grins~

    Many Blessings To All!

  40. How much more can come out that the banks and these ruling have to be handle on a national level with national banks, and states should use other states ruling because it a national conspiracy in with the banks have engaged in.

    This is no different than a murder going from state to state murdering people and his record follows him. There no doubt as with the NY Post story that these clown have come up with strategy to get around blank endorsed Notes and it not legal what they are doing!

  41. Exactly. Spot On!
    That is what the NM judiciary and AG’s office is currently waking up to as your last article indicated.

  42. They are still stealing lots of houses in NJ…..
    Nothing has changed

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